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The Supreme Court ruled that a hotel cannot take the cover of ‘owner’s risk’ clause on parking tokens to deny compensation to its guests for theft or damage to their vehicles once keys are handed over to the valet.
A bench of Supreme Court Justices Mohan M. Shantanagoudar and Ajay Rastogi held that if the hotel is allowed to exclude its liability for negligence by way of a contract, the standard of care imposed under Section 151 of the Indian Contract Act 1872 (ICA) will become illusory and virtually redundant, rendering consumers vulnerable without any remedy. Further, the standard of care required to be taken by the hotel as a bailee under Section 151 is sacrosanct and cannot be contracted out of.
The Apex Court said that when the hotel actively undertakes to park the vehicle for the owner, keep it in safe custody and return it upon presentation of a parking slip, it would be liable to return the vehicle in the condition in which it was given.
This story is from the December 2019 edition of Legal Era.
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This story is from the December 2019 edition of Legal Era.
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